Practice Profit Calculation For Loaders (3.1) - Depreciation Calculation

Practice: Profit Calculation for Loaders

Lesson 3.1Depreciation Calculation

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11 questions

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3 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
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6 sample questions

Question 1.
What is the formula for calculating depreciation?
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Think about the percentage applied to the initial price.
Question 2.
How do you determine the book value at the end of the year?
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Remember to subtract the depreciation from the initial value.
3Question 3.
What is the main purpose of calculating depreciation?
- To assess machine productivity
- To determine tax rates
- To understand asset value over time
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Think about why businesses track asset value.
4Question 4.
True or False: The economic life of a proposed loader is less than that of an old loader if costs are consistently lower.
- True
- False
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Compare the cost trends.
Question 5.
A loader's initial cost is 30,00,000 rupees. If its annual depreciation rate is 30%, calculate the book value after 3 years.
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Calculate the depreciation for each year based on the previous year's book value.
Question 6.
If a loader's operational cost increases by 10% annually and its initial operational cost was 15,00,000, what will be the operational cost in the 4th year?
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Increase by 10% each year, use previous values for calculations.

7 more questions in this section. Enroll free to practise them all.